India

Foreign companies in China are looking to move their operations to India

(Image Sourcce : Wikimedia Commons)

Several manufacturing companies operating from China have been reported to have started discussions with the Indian companies. It was about the possibility of moving their operations to India. This could be due to the COVID-19 outbreak. Many foreign companies in China have faced hiccups in their businesses due to the lockdown. Also, these companies are mostly around the area of Wuhan which was the epicenter of the Coronavirus spread. The company factories are planning to revamp their Supply Chain and their sourcing of the raw materials from India.

An Indian company called Hero Motors Co. was contacted by these firms showing interest in sourcing the automobile parts and electronics from them. These companies are reported to have suffered the most amount of loss due to the Coronavirus. The Indian government has yet to decide upon the plan on how to start negotiating the deals with these companies. In March of this year, the government has announced a scheme under the name ‘Production Linked Incentive (PLI) to kickstart this initiative.

According to the following report by WION, there are over 1000 companies who showed interest in moving their operations to India.

There have been reports from US-based companies dealing with medical electronics and medical equipment that have shown interest in India. However, no company from Europe has yet to contact India with similar interests.

The government has been slow to provide the required guidelines in order to complete these negotiations. But the companies from India are hopeful that this will bring the much-needed push to the economy. The economy has been struggling due to the fact that the businesses in India have been disrupted due to the Coronavirus lockdown.

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